The Extra And Unseen Advances Of The SME Policies 2013
The Singapore government came up with a plethora of programmes to further improve the small and medium enterprises (SMEs) and encourage more entrepreneurs to start up their business in the city-state. Safe to say, the Budget 2013 had a lot of surprises for the SME sector – the Productivity and Innovation Credit (PIC) Bonus, tax benefits, training, cash payouts, loans and more that can be availed from 2013 to 2015. These initiatives have inspired more registered Singapore companies.
1. Toolkit: The toolkit comprises of self-help guides in four (4) major areas that include customer services, human resource capability, financial management, marketing, and productivity.
2. Voucher for novelty and proficiency: If the small and medium-scale enterprises undergo and conduct productivity enhancements, increase the number of employees, and engage in innovative projects, the government has offered a $5,000 innovation and capability voucher to complement the investment businesses have done in these qualifying activities.
3. Tax incentive or rebate: The PIC by the Inland Revenue Authority of Singapore (IRAS) has approved to pay a 60% cash payout of $100,000 expenses that were used in productivity enhancement or a 400% tax deduction of $400,000 which must be covered in six qualifying areas. These areas include training of the employees, automation equipment, and registration of selected Intellectual Property Rights, further industrial research and development, and design projects which are approved.
4. Support Grant for Productivity Improvement: Known as the Capability Productivity Grant (CDG), this support meant for small enterprises provide aid in areas such as business innovation, design, brand development, and strategy. Through this scheme, the government aims to support SMEs financially by covering up to 70% of the investment made in these activities. Moreso, the areas include service excellence, intellectual property and franchising, human capital development among other important categories. The programme is mainly aimed at raising the level of competition between SMEs and large organisations as well as encourage SMEs to continue working on enhancing the quality of their products, technology, and its application on work and collaborative industry projects.
5. Loan from the Government: With major support from the government to the SMEs to improve the number of Company Incorporation Singapore, various government agencies continue to launch helpful initiatives that are supportive to the business industry. There are schemes which aim to provide loans that could be used as working capital. An alternative is trade financing which is offered by various financial institutions of Singapore.
The Government even works on equipment financing and SMEs can apply the loans under the following schemes:
– Local Enterprise Finance Scheme (LEFS)
– Micro Loan Program me(MLP)
– Loan Insurance Scheme (LIS)
Apart from the aforementioned assistive schemes for the SME sector launched in the Budget 2013, the government has opened multiple doors for the SMEs to bring about the right change in their functioning, as well as collaborate with major organizations to build their brand on the global front. This in turn helped the economy of Singapore.
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